Cover ‘afforded’ by umbrella policy means cover ‘provided’ (US)

Patrick Bracher, Norton Rose Fulbright

The insured sought cover under a catastrophe umbrella policy when a claim under the underlying policies had been dismissed for late notice.  The umbrella policy covered “any claim alleging bodily injury, personal injury or property damage, insurance for which is not afforded by the underlying policies”.  The court held that the word “afforded” in the context meant made available or provided by the primary policies, and not paid under the primary policies.

The word “afforded” was not defined and bore its ordinary unambiguous meaning, which the court found in the dictionary.

The Travelers Indemnity Co v Northrop Grumman Corp Case No. 1:16-cv-08778 US District Court for the Southern District of New York

First published by: Financial Institutions Legal Snapshot